Question 1

Retailers purchase enough products during a manufacturer's off-invoice allowance period to carry the retailers over until the manufacturer's net regularly scheduled deal is called:

Accepted Answer

This practice is known as forward buying, where retailers purchase products in bulk during the off-invoice allowance period to take advantage of lower prices and carry them over until the next scheduled deal.

Question 2

A network of organizations that creates time, place, and possession utilities for consumers and business users is known as:

Accepted Answer

A marketing channel, or distribution channel, is a group of organizations that work together to create time, place, and possession utilities for consumers and business users. This includes manufacturers, wholesalers, retailers, and other intermediaries who help move products and services from the producer to the end user or consumer. The Volkswagen strategy, Federal Express channel, and inventory level strategy are not relevant to this definition.

Question 3

Strategy of pricing the new product at a relatively high level and then gradually reducing it over time is known as:

Accepted Answer

Market skimming is a pricing strategy where a new product is introduced at a high price and then gradually reduced over time to attract different segments of consumers.

Question 4

Which of the following is NOT the step of decision-making process?

Accepted Answer

Post-purchase security is not a standard step in the decision-making process, which typically includes problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior.

Question 5

What mans that all possible intermediaries at the particular level of the channel are used?

Accepted Answer

The answer of What mans that all possible intermediaries at...

Question 6

Database marketing offers companies for which of the following four abilities?

Accepted Answer

Database marketing is the process of using customer data in order to understand target market behavior and create effective promotion strategies. The four abilities that database marketing offers companies are addressability, measurability, flexibility, and accountability. Addressability means that the company can precisely target its marketing efforts toward its intended audience. Measurability allows the company to gauge the effectiveness of its marketing strategies. Flexibility means that a company can continually adapt and adjust its marketing strategies to better reach its target audience. Finally, accountability means that a company can measure the results of its marketing efforts and take responsibility for its actions.

Question 7

The competitive strategy guru Michael Porter has argued that competitive advantage in product quality and costs can come from which of the following stage?

Accepted Answer

According to Michael Porter's competitive strategy, competitive advantage in product quality and costs can come from all three stages - inbound logistics processes, marketing and sales processes, and services processes. Therefore, the correct option is D, "All of the above".

Question 8

What is obtained by spreading the costs of distribution over a large quantity of products or over a wide variety of products?

Accepted Answer

Spreading the costs of distribution over a large quantity of products or over a wide variety of products leads to economies of scale and scope. This means that the cost of distributing each unit decreases with an increase in the quantity or variety of products, resulting in a more efficient distribution system.

Question 9

What is speaks as offensively rather than defensively oriented, and opportunity-seeking rather than problem solving?

Accepted Answer

Proactive marketing public relations is the only option that fits the description of being offensive, rather than defensive, and opportunity-seeking rather than problem solving. Event marketing relations and cause-related marketing may be defensive and problem-solving in nature.

Question 10

What is measured as a percentage of total industry sales over a specified time period?

Accepted Answer

Market share is the most commonly used metric to measure a company's or a product's performance in the marketplace, which is the percentage of total industry sales over a specific time period. It reflects how well a company or a product is doing in comparison with its competitors and provides insight into market trends and customer behavior. Research & development share, mind share, and voice share are not directly related to sales performance in the market.

Question 11

Form of brand promotion that ties a brand to a meaningful cultural, social, athletic, or other type of high-interest public activity is known as:

Accepted Answer

Even-related marketing ties a brand to a high-interest public activity, such as a cultural or athletic event, to promote the brand. Purchase-related marketing focuses on incentivizing customers to make a purchase, cause-related marketing involves supporting a social or environmental cause, and corporate-related marketing involves promoting the company's reputation and values.

Question 12

Leaves the cost and responsibility at transportation to the customer is called:

Accepted Answer

Free on board (FOB) pricing is a type of pricing strategy in which the responsibility and cost for transportation is left to the customer. This means that the seller will only be responsible for the goods until they are loaded onto the transportation vehicle, at which point the customer takes responsibility. This pricing strategy is advantageous for sellers because they are able to keep their costs down and can offer lower prices to their customers.

Question 13

What is the reason for setting advertising objectives?

Accepted Answer

Setting advertising objectives serves multiple purposes, including ensuring agreement among top management, guiding the creation of the advertising strategy, and providing a benchmark for measuring results. Therefore, all of the above options (A, B, and C) are correct.

Question 14

A post-purchase doubt the buyer experiences about the wisdom of the choice is called:

Accepted Answer

Cognitive dissonance is a psychological discomfort or tension experienced by a person after making a decision, especially in case of a significant purchase. The buyer may start questioning their choice and may experience doubts, anxiety, or remorse. This is known as post-purchase dissonance or cognitive dissonance. Therefore, option B is the correct answer. The other options are incorrect and do not describe post-purchase doubt.

Question 15

What is calculated by dividing the cost of an ad placed in a particular ad vehicle by the number of people who are exposed to that vehicle?

Accepted Answer

Dividing the cost of an ad placed in a particular ad vehicle by the number of people who are exposed to that vehicle gives the cost per thousand (CPM), which is a widely used metric in advertising to compare the cost-effectiveness of different ad vehicles.

Question 16

Movement of products, negotiation, ownership, information, and promotion through each participant in the marketing channel is called:

Accepted Answer

The movement of products, negotiation, ownership, information, and promotion through each participant in the marketing channel is called flows in marketing channels. This includes the flow of products from manufacturers to wholesalers to retailers to consumers, as well as the flow of information and communication between these parties. It also involves negotiations for ownership of the product and promotion of the product to different audiences along the channel. The terms "market ownership flow," "marketing management channels," and "logistics in marketing channels" do not fully capture all aspects of the movement and exchange of goods, information, and promotion through the marketing channel.

Question 17

Form of defensively oriented public relations that deals with developments having negative consequences for the organization, this is called:

Accepted Answer

Reactive marketing public relations deals with negative developments and focuses on defending the organization against negative consequences.

Question 18

The consumer arrives at a choice by considering all of the attributes of a product and mentally trading off the alternative's perceived weakness on one or more attributes for its perceived strength on other attributes in:

Accepted Answer

The process described in the question is the basic idea behind the compensatory model of decision making. In this model, consumers consider all attributes of a product and make trade-offs between the strengths and weaknesses of each attribute in order to arrive at a decision. The alternative model, the non-compensatory model, involves setting minimum levels of acceptability for each attribute and rejecting products that do not meet those levels, regardless of their strengths on other attributes. The post-purchase model and house-holding decision making model are not relevant to the process described in the question.

Question 19

What come in a variety of forms and are offered to retailers simply for purchasing the manufacturer's brand or for performing activities in support of the manufacturer's brand?

Accepted Answer

Trade allowances are incentives given to retailers for purchasing the manufacturer's brand or for performing activities in support of the manufacturer's brand. These allowances come in various forms such as cash discounts, quantity discounts, and promotional allowances. Option B, C, and D are not correct as power transfers, sales promotions, and reward structures are not directly related to manufacturer-retailer relationships and incentives given for purchasing a manufacturer's brand.

Question 20

The process by which individuals or groups select, use, or dispose of gods, service, ideas, or experiences to satisfy needs and demands is called:

Accepted Answer

"Consumer behavior" is the most commonly used term to describe the process of how individuals or groups make decisions about what to buy, use, or dispose of in order to satisfy their needs or desires. "Buyer behavior" and "purchaser behavior" are similar terms, but they focus more specifically on the act of purchasing, rather than the broader process of decision-making. "User behavior" may be relevant in certain contexts, but it doesn't capture the full scope of the decision-making process involved in consumption. Therefore, option A is the best choice.

Exam 1: Certified Business Manager